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District Retail Strategies: Phase II

Retail Merchandising Mix Plan

A Collaborative Effort of

Portland Development CommissionAssociation for Portland Progress

February 2000

Report Prepared byKeyser Marston Associates, Inc.

Consultant to the Portland Development Commission

Acknowledgements:

A. Jerry Keyser, President, KMAMarilyn Chu, Manager, KMA

Gerry Paiva, Independent Retail Consultant to APPBryan Sampsel, Senior Market Analyst, Norris Beggs & Simpson

Penny Kennedy, Program Manager for Business Development, APPLes Prentice, Development Manager/Downtown Team Leader, PDC

Ross Plambeck, Project Coordinator/Downtown Team, PDC

TABLE OF CONTENTS

Page

Introduction 1Executive Summary 6Retail Core District 14Historic Old Town/Chinatown/Skidmore District 22Pearl District 30West End/Crossroads and Cultural Districts 37Recommendations and Implementation 49

Tables

Table 1 – Existing District Retail Characteristics (2000) 8

Table 2 – Recommended Retail Merchandising Mix Plan (2010) 11

Table 3 – Existing District Retail Characteristics (2000) – Retail Core 20

Table 4 – Recommended Retail Merchandising Mix Plan (2010) – Retail Core 21

Table 5 – Existing District Retail Characteristics (2000) – 28Historic Old Town/Chinatown/Skidmore District

Table 6 – Recommended Retail Merchandising Mix Plan (2010) – 29Historic Old Town/Chinatown/Skidmore District

Table 7 – Existing District Retail Characteristics (2000) – Pearl 35

Table 8 – Recommended Retail Merchandising Mix Plan (2010) – Pearl 36

Table 9 – Existing District Retail Characteristics (2000) – 46West End/Crossroads and Cultural Districts

Table 10 – Recommended Retail Merchandising Mix Plan (2010) – 47West End/Crossroads and Cultural Districts

Appendix – District Retail Maps 53Retail Districts (overall)Retail Core DistrictHistoric Old Town/Chinatown/Skidmore DistrictPearl DistrictWest End/CrossroadsCultural District

INTRODUCTION

This document represents the second phase of the District Retail Strategies in a joint effort between the Cityand local business community to guide Portland's downtown retail sector into the 21st Century. Phase Iestablished the foundation for strategies to ensure that Portland's downtown will capture its share of theregional market growth in the next 10 years. Phase II translates the broad foundations into specific retail plansfor the districts within the downtown.

Background

In 1998, Keyser Marston Associates (KMA), Inc. prepared a market analysis for the Portland DevelopmentCommission (PDC) identifying the existing and future potential for retail in the downtown core. The PortlandDowntown Retail Market Analysis concluded that downtown Portland is not currently capturing its share ofretail sales and that, based on the future residential and visitor growth projections, downtown has the potentialto capture a significant amount of additional retail sales. The report recommended that the City look todestination retail as a primary means of increasing downtown's market capture share.

In addition, one of the key conclusions of the Market Analysis is that the expenditure potential available todowntown is projected to increase by about $300± million1 between 2000 and 2010, of which an estimated$170± million would be potentially available to support net new retail and eating and drinking space and $130±

million would potentially be available to support increased sales at existing retail and eating and drinkingestablishments downtown. The $170± million for net new space translates generally into approximately250,000± sq.ft. of net new GAFO space (General Merchandising, Apparel, Furniture and Furnishings and

Other Specialty Retail Uses) and 100,000± sq.ft. of net new eating and drinking space, or a total of 350,000± ofnet new space downtown. The majority of the projected increased expenditure potential is expected to comefrom residents in the Primary Trade Area and downtown employees.

Upon reviewing the market analysis report, the Downtown Retail Council (DRC) pointed to the value of acarefully balanced mix of retail choices in downtown. It is the unique array of retail choice — large and small,local and national, independent owners and chains, pricing levels and product lines — that gives downtownPortland its particular appeal and sets it apart from other cities. Thus, they were concerned for the future ofindependent retail businesses in the downtown and offered to participate in the continuing study of thedowntown retail market.

1 See Table 4.4 in Keyser Marston’s 1998 Portland Downtown Retail Market Analysis.

Phase I

To address these concerns, the DRC formed the District Retail Strategies Task Force. In the spring of 1999,Task Force began Phase I: development of strategies creating the foundation for maintaining downtown'sretail market share in the metropolitan area and for capturing additional retail sales in the future. The TaskForce's efforts culminated in the District Retail Strategies: Phase I Report in October of 1999. The Phase IReport identifies the retail opportunities and constraints present in the downtown areas, and proposes specificactions to help independent and national retailers successfully meet the challenges identified.

Phase II

PDC has retained Keyser Marston Associates to continue with Phase II of the Retail District Strategies, whichis the development of a Retail Merchandising Mix Plan. The Association for Portland Progress (APP) isassisting KMA in the preparation of Retail Merchandising Mix Plan and has retained an independent retailconsultant, Gerry Paiva, to provide local retail expertise. PDC has also retained Bryan Sampsel of Norris,Beggs, and Simpson, to provide information on local market conditions. PDC is coordinating and monitoringthe preparation of this Plan. APP will use the Report in its preparation of the Implementation Plan, whichconstitutes the final phase of this three-phase effort.

Phase III

Upon completion of the Retail Merchandising Mix Plan, an advisory group comprised of major and independentretailers, commercial brokers, property owners, managers, and leasing agents will develop strategies andtactics for Plan implementation, which will constitute Phase III of the District Retail Strategies.

Purposes of the Retail Merchandising Mix Plan

The Retail Merchandising Mix Plan is a refinement of the retail strategy, which was broadly identified in Phase Ifor each of the Retail Districts. The goals of the Plan are:

1. To ensure that the nature and size of the retail mix in the downtown districts will maximize downtown’spotential to increase market share and retail sales;

2. To maintain and enhance downtown Portland as the vital commercial hub of the metropolitan area whilecreating a balance among the Districts; and

3. To create an opportunity for local retail tenants whose uniqueness will: (a) add to downtown’s ability tooffer both merchandise and ambiance that is difficult to duplicate in most shopping centers and otherdowntowns, and (b) help reinforce downtown Portland as a significant destination retail location.

Retail Merchandising Mix Plan Elements

The Retail Merchandising Mix Plan is defined as having the following elements:

§ A quantity of tenants by category of merchandise that reinforces a “theme” for each of the unique districtsof downtown. The theme itself will have resulted from one or more of the following factors: historiccircumstances, unique physical features, evolving usage, public policy decisions and economic forces,including quantities of existing space by type of use or merchandising category.

§ A critical mass of retail that achieves its identity by the creation of adjacencies or, geographic points ofconcentration, within the district, thereby causing the district to stand out in customers’ minds amongstavailable shopping choices.

§ A unique identity achieved through a combination of merchandise, presentation, ambience and service allworking together. In this regard, the "one of a kind" local tenants or nearly "one of a kind" regional tenantsplay a vital role in the Retail Merchandising Mix Plan as they are essential in creating that sense of uniquedistrict distinction.

§ A mix of local, regional, and national tenants that is consistent with the rent characteristics of the district ‘spersonality and with the primary target markets that make sense for each district.

§ The contribution that each unique district in the downtown can make not only by establishing a theme toimprove the district itself but also by creating a stronger downtown overall by offering a variety ofexperiences and shopper opportunities within proximity to each other.

District Definition

In its Phase I Report, the Task Force identified four districts in the downtown as having geographiccharacteristics that can make each a distinct retail destination. Identifying the theme or "flavor" of each districthelps determine the cluster of complementary retail uses that both promotes the district and expands the visitorand local market. Separate theming will also help define each district's role relative to the overall downtownbased on its distinguishing as well as its complementary characteristics. District by district “theme-ing”articulates the qualities that define each district and serve as the foundation for implementing related visual,marketing, and promotion elements that enable retail uses in the district to maximize their sales potential. Thefour districts identified are as follows and shown on Map 12:

§ Retail Core District (generally bounded by SW Salmon on the south, West Burnside and SW Stark on thenorth, 9th and 10th on the west, and Naito Parkway on the east)

2 Note: The boundaries are intended to provide a general geographic delineation of the four districts. As such, they are approximate and flexible andmay overlap along some edges.

§ Historic Old Town/Chinatown/Skidmore District (generally bounded by SW Stark and West Burnside on thesouth, Broadway on the west, NW Glisan on the north and Naito Parkway on the east)

§ Pearl District (generally bounded by West Burnside on the south, I-405 to the west, NW Lovejoy and Hoyton the north and Broadway on the east)

§ West End/Crossroads and Cultural Districts - with two principal retail/entertainment subdistricts: Crossroadsand Cultural Districts (generally bounded by SW Market Street on the south, I-405 on the west, WestBurnside on the north, and SW 9th and Broadway on the east)

This report summarizes the key existing characteristics which distinguish the four retail districts above, andrecommends a merchandising plan in concert with a theme for each.

EXECUTIVE SUMMARY

This report summarizes the salient characteristics of each of the four downtown retail districts today (2000) and proposes a merchandising mix planfor guiding retail development in the districts in the future (2010). The salient characteristics that define or "theme" a district generally include thefollowing:

§ Retail Defining Characteristics - identifies the predominant uses and the particular mix of uses, which (1) distinguish and differentiate an areaand (2) give it a sense of place and destination.

§ Retail Inventory and Composition – provides an estimate of the existing amount of retail space in each district, based on APP’s retail database,the City’s 1999 Pearl District Parking Study Survey, consultants’ qualitative assessment of the districts, and other available data sources.

§ Nature of the Shopping Place - describes the configuration of the retail clusters or concentrations, such as linear/street retail, shopping center,or shopping complex.

§ Location Concentration - identifies the geographic concentration of retail uses (which may or may not be the same or similar types of uses) inthe district.

§ Tenant Mix – indicates the approximate mix of (1) local/independent tenants, (2) regional tenants and (3) national tenants. For the purpose ofthis study, local/independent tenants are defined as those with 2 stores or fewer, located in the greater Portland area; regional tenants are thosewith 3 or more stores, located in the northwest region, national tenantsare typically brand or chain stores, with a multi-state presence, which may include locally-owned operations. The estimated mix of tenants isbased on a review of the APP retail database, information provided by the local retail consultants, and general survey observations.

§ Merchandising Mix - indicates the most frequent type of retail shopping pattern, which may range from serious comparison shopping (i.e.,typically done in major regional centers) and impulse shopping (i.e., typically done in specialty stores) to convenience goods shopping (i.e.,typically done in local, neighborhood centers.)

§ Price Points - indicates the price and the general quality level of the merchandise.

§ Primary User Markets - indicates the primary retail users of the district, which typically include one or more of the three major segments in thePortland downtown market: residents, employees, and visitors. A smaller, but differentiated segment, is that of students attending theeducational facilities nearby.

§ Role - sets forth the purpose or function of the district relative to downtown overall and its contribution to helping to promote, enhance, andestablish downtown as a major, regional retail destination.

§ Size and Comparison of Opportunity – provides an estimate of the amount of net new retail space that can potentially be captured in eachdistrict, based on (1) the total amount of square footage (approximately 350,000 sq.ft.) projected to be supportable in KMA’s 1998 PortlandDowntown Retail Analysis and (2) an allocation of that total amount based on a qualitative assessment of the competitive strength of each of thedistrict.

A description of the above salient characteristics for each of the four downtown retail district — as they exist today and as desired for the future —are summarized, respectively, in Tables 1 and 2. Table 1, Existing District Characteristics (2000), also includes a summary of existing challengesfaced by each of the districts. Table 2, Recommended Retail Merchandising Mix Plan, includes a summary outline of the recommended retailchanges and supportive enhancements needed to transform the future vision for the district into reality.

After the summary matrices, this report is organized into four sections: one for each of the downtown retail districts.

TABLE 1PORTLAND DISTRICT RETAIL STRATEGYEXISTING DISTRICT RETAIL CHARACTERISTICS (2000)

DISTRICTS(APPROXIMATEBOUNDARIES)

RETAIL CORESalmon, 9 th/10th, Burnside,Stark, Naito

HISTORIC OLD TOWN/CHINATOWNStark/Burnside, Broadway,Glisan, Naito

PEARLBurnside, I-405,Lovejoy/Hoyt, Broadway

WEST END/CROSSROADS AND CULTURALi

SUBDISTRICTS CROSSROADS(Salmon, 13th, Burnside,9th/10th)

CULTURAL(Market, 12th, Salmon,Broadway)

DISTRICT DEFININGCHARACTERISTICS

§ TraditionalDowntown RetailCenter- Dept. Stores- Specialty Retail- Restaurants

§ Pioneer Place§ Offices§ Hotels§ Non-Traditional

Movie Theaters§ Pioneer Square

§ Nightlife/Entertainment§ Chinatown§ MAX line and Transit

Mall§ Proximity to

Convention Center andRose Quarter

§ Historic Buildings andSkidmore Foundation

§ Saturday Market§ “Made in Oregon”§ New Office and

Residential§ Galleries§ Services for Transient

Population

§ Lifestyle Retail- Powell’s Books- HomeFurnishing/ Antiques

- Art Galleries§ Restaurants§ Loft Housing &

Renovated Warehouses§ Entertainment§ Pacific NW College of

Arts and PortlandInstitute ofContemporary Arts

§ On Edge of MajorResidential New Growth

§ Adjacency to RetailCore and Pearl

§ Local SpecialtyTenants (Eclectic)

§ Ethnic Restaurants-“Restaurant Row”

§ Street Car Line UnderConstruction

§ Governor Hotel

§ Portland Art Museum,Oregon HistoricalSociety

§ Churches§ Proximity to PSU§ Residential§ Heathman Hotel§ Portland Center for the

Performing Arts (PCPA)§ Schnitzer Concert Hall

EXISTING RETAILINVENTORYii ANDCOMPOSITION

Est. 1.4 ± million SF:iii

58% Specialty Retail29% Dept./Anchor Stores 8% Eating and Drinking 4% Other Retail

Est. 550,000 ± SFiv

48% GAFO46% Eating and Drinking 6% Galleries

Est. 650,000 ±SFv


Est. 200,000± SF3,4


Est. 100,000± SFv i

Est. 95% GAFO5% Eating and Drinking

TABLE 1 (continued)

DISTRICTS RETAIL COREHISTORIC OLDTOWN/CHINATOWN PEARL CROSSROADS CULTURAL

EXISTING LOCATIONALCONCENTRATION ANDNATURE OF THESHOPPING PLACE

Dept. Stores: Meier &Frank, Nordstrom, Sak’s5th Ave.

Shopping Complexes:Pioneer Place, Galleria(links core with WestEnd); Fox (underconstruction)

Street Retail: Alder,Morrison & Yamhill from2nd to Park

Multiple Points of Interestbut No Single Focus:Saturday Market/SkidmoreFountain, New MarketVillage, Chinatown on 4 th

Ave, 1st Ave MAX Line

Glisan, Hoyt, & Everett Street Retail: Morrison from9th to 11th, 10th from Alderto Taylor, Yamhill fromPark to 10th and BurnsideTriangle

Street Retail: Broadway to10th and along the ParkBlocks

EXISTING TENANT MIXvii

(By No. of Tenants)30%-40% Local/RegionalTenants60%-70% National/BrandTenants

70%-75% Local/RegionalTenants25%-30% National/ BrandTenants


90%-95% Local/RegionalTenants5%-10% National/BrandTenants

90%-95% Local/RegionalTenants5%-10% National/BrandTenants (Safeway)

EXISTINGMERCHANDISING MIX

§ Major Dept. Stores§ Up-scale National

Specialty Stores

§ EveningEntertainment

§ Restaurants, Food§ Local Artists &

Products§ Ethnic Groceries§ Souvenirs

§ Destination Retail:Books (Powell’s)

§ Home Furnishings,Antiques

§ Art§ Restaurants

§ Eclectic Tenant Mix§ Destination Retail:

Finnegan’s; Real MotherGoose; Art Media

§ Vintage, Retro

§ ConvenienceStore/Safeway Grocery

§ Oregon HistoricalSociety and Portland ArtMuseum Bookstoresand Gift Shops

EXISTING PRICE POINTS Moderate to High Low to Moderate Moderate to High Moderate ModerateCURRENT PRIMARYUSER MARKETS

§ Close-In Residents§ Downtown Workers§ Visitors/Tourists

(Families)§ Weekend Shoppers

§ Tourists§ Downtown Workers§ Weekend Shoppers§ Event Goers§ Nearby Residents

§ District Workers§ Nearby Residents§ Downtown Workers§ Weekend Shoppers

§ West End Residents§ Downtown Workers§ Event Goers

(especially CivicStadium)

§ Event Goers§ Restaurant Goers§ Residents

TABLE 1 (continued)


EXISTINGCHALLENGES

Insufficient parkingInadequate publictransit on eveningsand weekendsScattered surfaceparking lots.Pockets with no retailfrontageIncreasing rentsExpensive rehab(upper floors)

Burnside Street barrierVisitor and Shoppercompatibility withtransient populationCreating attractivepath to ClassicalChinese GardensFragmented propertyownershipCostly rehab of olderbuildingsLack of continuousretail frontageIncreasing rents

Burnside Street barrierNegative image ofBurnside as “FrontDoor” to DistrictInsufficient streetparking and streetlightingMeshing ofentertainment withresidential (noise)Costly rehab of olderbuildingsLack of continuousretail frontageIncreasing rents

Conversion of Galleriainto a positive forceUpgrade of 10th andYamhill GarageBurnside Street asbarrierCostly rehab of olderbuildingsDispersed landownershipLack of continuousretail frontageIncreasing rents

Insufficient parkingLack of retail massand linkagesCostly rehab of olderbuildingsLack of continuousretail frontageIncreasing rents

1. These districts are in addition to the residential neighborhood in the southern portion (the remainder) of West End.2. Includes GAFO (General Merchandise, Apparel, Furniture/Furnishings, Other) and Eating and Drinking. Estimates based on available data from APP and Norris, Beggs & Simpson. Generally excludesretail and restaurants in hotels. Composition breakdowns are approximate.3. Assumes Galleria is in Retail Core District inventory.4. Based on APP’s Business Improvement District Program retail database.5. Based on the City’s 1999 Pearl District Parking Study Survey, excludes retail services and auto related uses.6. Estimate only. No survey data available.7. Estimate only. Based on review of APP retail database; information provided by local retail consultants and windshield surveys.

TABLE 2PORTLAND DISTRICT RETAIL STRATEGYRECOMMENDED RETAIL MERCHANDISING MIX PLAN (2010)DISTRICTS(APPROXIMATEBOUNDARIES)

RETAIL CORESalmon, 9 th/10th, Burnside,Stark, Naito

HISTORIC OLD TOWN/CHINATOWNStark/Burnside, Broadway,Glisan, Naito

PEARLBurnside, I-405,Lovejoy/Hoyt, Broadway

WEST END/CROSSROADS AND CULTURALviii

SUBDISTRICTS CROSSROADS(Salmon, 13th, Burnside,9th/10th)

CULTURAL(Market, 12th, Salmon,Broadway)

ROLE Be a NationallyRecognized First TierDowntown

Be:(1) Entertainment/Arts

District Oriented toConvention &Downtown Visitors

(2) Host to SaturdayMarket

(3) Asian Marketplace

Be:1. Trend-setting

Lifestyle Retail Hub forMetro Area

2. “Trendy”Restaurant/Bar Area

3. 24-Hour CreativeServices (Multi-Media).Com IncubatorArea

Be:1. Downtown Location for

New Local Tenants2. Crossroads for Pearl

and Core Districts

Be a Complementary RetailDistrict Supporting CulturalUses

SIZE AND COMPOSITIONOF OPPORTUNITYix

+100,000 to 150,000 SF80% GAFO20% Eating and Drinkingx

+50,000 to 75,000 SF30% Specialty Retail30% NeighborhoodCommercial40% Eating and Drinking)

+100,000 to 125,000 SF60% Specialty Retail40% Eating and Drinking+50,000± of NeighborhoodCommercial/Eating andDrinking

+50,000 to 75,000 ±SF50% Specialty Retail50% Eating and Drinking

Minor Addition70% Eating and Drinking30% Specialty Retail

Total = 1.5-1.55 M± SF Total = 600,000 – 625,000±SF

Total = 800,000 – 825,000± SF

Total = 250,000 – 275,000±SF

Total = 100,000 + SF

TABLE 2 (continued)


RECOMMENDED THEME § Upscale, TraditionalRetail Center (HighQuality Merchants)- Dept. Stores- Fashion-Oriented

Uses

§ Entertainment§ Asian Specialty Retail

and Entertainment§ Oregon-themed Retail

§ Trend-SettingLifestyle (Home &Garden) - with nationaland regional brandhome furnishings

§ Eclectic, Local andEthnic Retail andRestaurants

§ Cultural-OrientedSpecialty Retail(including gift shops andbookstores) and SmallCafes/ Restaurants

DESIRED NATURE OFSHOPPING PLACE

§ ShoppingComplexes

§ Galleria andDepartment StoreExpansion/Upgrade

§ Street Retail

Street Retail (3rd and 4 th),with connection to 5 th and6th bus stops.

§ The Brewery RetailComplex

§ Street Retail§ Rehabbed

Warehouse Retail

§ Street Retail (10th &11th, Morrison, Alder)

§ Street Retailconnecting with 10 th andPark Blocks

§ Vicinity of Safeway

DESIRED FUTURELOCATIONALCONCENTRATION

In addition to existing:§ West End of

Morrison, Yamhill§ Fox Tower§ Department Stores

and Galleria§ Smart Park Garages§ Renovated Pioneer

Courthouse Square

Three new concentrations,with strong links created:§ Chinatown’s 4 th Ave

(Path to ClassicalGarden)

§ Skidmore FountainVicinity (SW1st alonglight rail)

§ E/W link street-Ankeny/Ash

In addition to existing:10th & 11th as north/southconnectors of Powell, Blitz,Glisan, and Everett

Reinforce:§ 10th & 11th (Taylor to

Alder)§ Morrison Street§ “Singer” Boutique

Row§ Federal Reserve

Building SiteRehab/Reuse

§ Streetcar Stops

Reinforce:Broadway to 10th alongPark Blocks

DESIRED TENANT MIXxi

(by No. of Tenants)20%-30% Local/RegionalTenants70%-80% National/BrandTenants

70%-75% Local RegionalTenants25-30% National/BrandTenants (More RestaurantsEmphasis

70%-75% Local/RegionalTenants25%-30% National/BrandTenants (More HomeFurnishings Emphasis)


90%-95% Local/RegionalTenants5%-10% National/ BrandTenants (Safeway)

TABLE 2 (continued)


DESIREDMERCHANDISING MIX

Additional:§ Large format apparel§ Electronics§ Specialty retail§ Renovated &

Retenanted Galleria§ Dept. Store

Expansion (Emphasison unique to themarket retailers)

New:§ Festive (Family-

Oriented) Retail/Entertainment

§ Ethnic “Fusion”Restaurants

§ NeighborhoodCommercial, i.e.,grocery stores, drugstores and dry cleaners

§ Asian MarketExpansion:§ Saturday Market

Expansion:§ Home Furniture/

Accessories/Furnishings§ Trend-Setting

Restaurants§ Contemporary Art

Galleries§ Neighborhood

Commercial, i.e.,grocery stores,cleaners, print copyshops, etc.

Expansion:§ Signature and Trendy

Restaurants onMorrison Street

§ Upscale BoutiqueRetail on “Singer Block”

§ Cutting Edge Retail(Burnside Triangle,which holds a lot ofentertainment venues)

§ Electronics

New:§ Sidewalk Cafes§ Boutique Hotels§ “Chef” Restaurants§ Art Galleries/Shops§ Small Performing Arts

Venues

ENHANCEMENTSBENEFITING RETAIL

§ More publictransportation, parking

§ Downtown LightingDistrict

§ Extended andcoordinated shoppinghours

§ Wayfinding systems,i.e., signs/banners,information kiosks

§ Transit mall rehab§ Pioneer Courthouse

Visitors Center§ Street activities, i.e.,

flower stands, vendors,street performers /artists

§ Information kiosksand “wayfinder” signage

§ Transit Mallimprovement

§ Services for visitors,i.e., souvenirs/gifts, foodoptions, film processing

§ Façade improvements§ Building lighting§ Streetscape

improvements§ Burnside

improvements

§ Sidewalk andstreetscapeimprovements withflowerpots, benches,information kiosks, and“way finders”

§ Improvement of visualimage of parking lots

§ Signs and banners§ Lighting appropriate

to District theme§ Additional bus service§ Improved access via

public transit§ Short-term parking

facility

§ More short-term,visitor parking

§ Elimination of surfaceparking lots

§ Attractions(sign/banners,information kiosks, etc.)

§ Sidewalk amenities,i.e., flowerpots,benches, vendors along10th and 11th, etc.

§ Organization ofdiverse interests inDistrict

§ Establish links withstreetcar and MAX

§ “Kid-oriented” areabetween Library andmuseums

§ Sidewalk amenities,street artisans, food andflower vendors, etc.

§ Streetcar links

1 These districts are in addition to the residential neighborhood in the southern portion (the remainder) of West End.2 The lower end of net new retail space recommended, i.e., 350,000± sq.ft., reflects the increase in expenditure potential between 2000 and 2010 projected in KMA’s 1998 Portland Downtown RetailMarket Analysis. The upper end assumes more optimistic conditions. The allocation of the total new space addition by District and type of retail is based on KMA’s assessment of the likely opportunitiesin each district.3 GAFO defined as General Merchandise, Apparel, Furniture/Furnishings, Other Specialty Retail.

RETAIL CORE DISTRICT

1. Definition of District

The Retail Core District in Portland's downtown is generally defined as the area bounded by SWSalmon Street on the south, Naito Parkway on the east, West Burnside Street on the north, andblends into the West End Crossroads along SW 9th and 10th Avenues (see Map 1). This area isthe hub of the region's major retail destination and draws support from throughout thenorthwest. The intent of the Retail Merchandising Mix Plan is to identify opportunities forenhancing and strengthening the Core's role as the premier retail shopping center of the region.

2. Existing Retail District Characteristics

District Defining Characteristics

The retail character of the Core District today is established by its major anchor stores,shopping complexes and street retail. It is a traditional downtown retail center with a complex ofdepartment store, specialty retail and restaurant establishments. Three major departmentstores, Meier & Frank, Nordstrom and Saks’ Fifth Avenue are strategically located along thelight rail couplet formed by Morrison and Yamhill Streets and serve as anchors for the Core.Pioneer Place with over 150,000 sq. ft. of existing upscale retail space (300,000 sq.ft. when itsexpansion is completed in March 2000) is also a major regional attractor. Additional newconcentrations of space are at the ODS Tower and the Fox Tower (to open August 2000).Other flagship stores such as Niketown, Columbia Sportswear and Nordstrom Rack, or unique,"one of a kind stores", such as The Real Mother Goose and Portland Cutlery, reinforce thedestination shopping nature of the Core District.

The character of the Core also benefits from a number of special attractions in the area,including the presence of the largest concentration of office space in the Portland market, acluster of boutique and business hotels, the light rail couplet down the Morrison/Yamhill, thetransit mall (though the transit mall also presents challenges), a number of movie theatres, thespecial events at both Pioneer Courthouse Square and Waterfront Park, and its urban parksand trees ambiance. The small size of the Portland's 200' block is an added advantage as it iseasily walkable and thus is perceived as more pedestrian-friendly. The Core is also easilyaccessible by car and public transportation, and offers inexpensive, short-term parking at anumber of privately-owned and the City’s Smart Park Garages.

Retail Inventory

The Core is also defined by an estimated 1.43 million sq.ft. of shopping and entertainment,which makes it one of the largest such concentrations in the Portland Metropolitan Area. Whenthe additional retail space from adjacent districts are included, total amount of retail/entertainment space makes the extended downtown a dominant retail destination. Of theapproximately 1.4 million sq.ft. retail space inventory in the Core, an estimated 58% is inspecialty retail space; an estimated 29% is in department and anchor store space; 8% in eatingand drinking and the remaining 4% in other retail uses.3

Location Concentrations and Nature of the Shopping Place

Retail in the Core is currently concentrated in three types of shopping places: (a) departmentstores, (2) retail complexes such as Pioneer Place and Galleria, and (3) street retail, such asalong Morrison and Yamhill, from approximately SW 2nd to Park Avenue.

Of great importance to the effectiveness of the Core is its close proximity and easy walkingdistance to many of downtown’s principal attractions. In this respect, the small block size of theCore (200 by 200 feet) contributes to the pedestrian-friendly environment of the downtown. Itshould be noted, however, that the retail continuity is broken up by full-block projects built in the60’s and 70’s before the required retail zone was established.

The nature of the shopping place in the Core is threefold. Much of the retailing is street retail.However, on a square footage basis, the largest concentration of retail space is either in theform of department stores or shopping complexes, such as Pioneer Place, the Fox Tower, andthe Galleria.

Tenant Mix, Merchandising Mix and Price Points

The Core includes a broad mix of local, regional and national tenants, offering a range of mid-tohigh-price point merchandise. Local/regional tenants are estimated to comprise about 30% to40% of the total retail store inventory in the Core; national tenants are estimated to comprise theremaining 60% to 70% of the total. In general, the higher price point tenants are clustered in theproximity of the department stores and Pioneer Place, along Morrison and Yamhill, while thevalue-oriented tenants are located in the more peripheral locations. This distribution of tenantsis largely a function of rent gradients within the Core. The higher-price point tenants can affordthe higher rents, and have the financial credit status required by owners and developers of newor rehabbed shopping complexes in the most desired locations.

3 See KMA’s 1998 Portland Downtown Retail Market Analysis for basis of estimate.

Such rent gradients also have a major influence on distribution of local/regional versus nationalbrand tenants. The percentage of local/regional tenants who have the rent paying capacity andfinancial credit status to qualify for “100% locations" and premier space is limited and,conversely, the amount of space that developers can provide to such tenants is also restricted.Therefore, it is estimated that well over one-half of today’s tenant mix is occupied by nationalbrands, and that this trend will continue. While a limited number of local/regional tenants will beaccommodated in the premier locations and complexes, most will locate either in the peripheryof the Core or in the downtown districts that surround the Core where rents are less prohibitive.

Primary User Market

The Core District draws its support from three major market segments: (1) residents, primarilyfrom the close-in, affluent neighborhoods, who often shop on weekends (2) employees workingdowntown, and (3) visitors. Residents provide an estimated 50% of the retail sales downtown.Visitors are also a strong retail support segment, providing up to 35% of downtown retail sales.Employees provide the remaining 15% of the estimated retail sales support downtown.

Challenges of the District

While Portland’s retail core is one of the stronger in the United States, the District is alsoconfronted by several challenges. Specifically, the Meier & Frank building and the Galleria arephysically and functionally obsolete by today’s retail standards, and as such should beconsidered “vulnerable.” Even the Nordstrom building is now older and does not meet the sizeand design standards of a contemporary flagship store. These buildings need to be renovatedand/or repositioned, or at least be placed on a “watch list” in order to remain competitive in thefuture. However, the high cost of renovating an older building while occupied is often adeterrent to the upgrade/rehab of a property.

There is a shortage of parking in the downtown office core due to tight parking regulations.Parking is expected to become more of an issue as retail and cinema are added to the Core.For example, parking availability will be even more constrained when parking on Park Block 5 iseliminated. Public transportation on the weekends, in the evenings, and during holidays willneed improvement. Mitigation will also be needed to deal with the heavy traffic on Broadwayand the truck loading zones in the area, which impede pedestrian flow. Transit mallrehabilitation with active retail is another issue that needs attention.

In all Districts, the retail street frontage is often interrupted by non-retail uses, surface parkinglots, etc., which detracts from the pedestrian ambiance of the District.

Other challenges also experienced in all four of the downtown retail districts are increasing retailspace rents and the costly rehab of older buildings, which, in some areas, are impacting theability of the smaller, locally-owned/operated stores to survive, expand and/or locate in thedowntown.

These issues will need to be addressed as part of the Phase III - Implementation Strategy forthe Core District.

3. Recommended Retail Merchandising Mix Plan

Role

The recommended role for the Core District is to reaffirm, strengthen and enhance its positionas one of the first tier downtowns of the United States. Portland’s downtown has achieved greatmomentum in the last decade. The task at hand is to continue this transformation of thedowntown into a 24-hour place that is vibrant with people, activities and life, a source of pride forPortland residents, and an increasing attraction to the ever growing, world-wide convention andvisitor industry.

Size and Composition of Opportunity

Keyser Marston Associates Inc.'s 1998 market analysis projects an opportunity for the overalldowntown retail market to grow by at least 350,000 sq. ft. in the next ten years over and abovethe new space now being added. Such growth would place over 3,000,000 sq.ft.4 of retail inPortland’s downtown by the year 2010. The retail-merchandising plan for downtown shouldanticipate that about one-third to one-half, or 100,000 sq.ft. to 150,000 sq.ft., of that opportunitycould potentially be added to the Core, either in the form of new stores locating in the area orexpansion of existing stores, for a total of 1.5 million to 1.55 million sq.ft. of retail. The bulk ofthis addition, or about 80% is recommended to be GAFO-type of retail (General Merchandise,Apparel, Furniture and Furnishings, Other), with the remainder in Eating and Drinking.

Recommended Theme

The primary theme for the Core should be attraction/recruitment of new, quality retail andentertainment tenants which are (1) unique to the Portland Metropolitan Area, (2) compatiblewith both the fashion-oriented apparel uses that give the Core its personality, and (3)complementary to the new cinema/cultural additions in the downtown. Thus, the overallmerchandising strategy for the Core is to mirror the existing Pioneer Place Pavilion by attracting“first in the marketplace” and “one in marketplace” retailers, a number of which can and should

4 Inventory estimates may differ, depending on the definition of “downtown” and “retail”, i.e., whether uses, such as galleries andshowrooms, retail services, and above/below street-level retail are included.

be national or brand tenants. Equally important is the retention and expansion of existing,successful local tenants.

Nature of the Shopping Place

The core area merchandising plan should also recognize that department stores, though lessimportant today as anchors than 25 years ago, are still major destination tenants with the abilityto draw from a large trade area, and whose advertising dollars can be very important tomarketing a location. Saks' 5th Avenue will open its expansion in March 2000. Thus, primarydialogue for potential improvements should be initiated with the other two downtown departmentstores, Meier & Frank and Nordstrom, which are still located in older facilities that have not beenupgraded.

It is expected that shopping complexes, such as the Galleria and Pioneer Place and street retailwill continue to be the major form of retail shopping destinations.

Future Location Concentrations

Geographically, the first effort should be to encourage many of the new retail uses to locate atthe west end of Morrison and Yamhill to (1) reinforce that portion of the Core District, and (2)create a synergistic retail that can generate a sufficiently high level of pedestrian energy for spillover to the West End District and thus help activate the retail there. Future major nodes of retailconcentration will likely include the Fox Tower, which is expected to have approximately 65,000sq.ft. of retail and theaters, as well as the existing department stores and the Galleria. Smallerretail nodes should also be created at the ground level of the Smart Park Garages. Other nodesshould include the north edge of the Core with spillover to HistoricOldTown/Chinatown/Skidmore and east of SW 3rd to encourage pedestrian traffic from thewaterfront into the more populated core area.

Tenant Mix

Given the regional-oriented nature of the retail in the Core, it is recommended that the mix ofnational brand tenants be increased by at least 10%, to 70% or 80% of the total retail tenantmix, by 2010, which would provide the Core with a stronger retail presence in the metropolitanregion.

Merchandising Mix

Additional types of retail that will complement the existing mix include large format apparelstores (such as Old Navy), electronic uses, and additional specialty retailers. Marketing effortsshould focus on recruiting or attracting retailers, which are unique to the downtown marketplace,e.g., “one-of-a-kind” stores. Renovation and retenanting of the Galleria will also be one of the

single most important accomplishments to put in place for the strategic vision for the CoreDistrict. Projects with equal impact, such as a department store expansion, should be pursuedwithin the Core District.

Enhancements Benefiting Retail

Enhancements that will support the retail theme for this District include the following keyelements recommended by the District Retail Strategies Task Force in the Phase I StrategyReport:

§ More public transportation and parking, especially on weekends and during holidays;

§ Downtown Retail Core Lighting District;

§ Extended and coordinated shopping hours to attract shoppers after work and after events;

§ Wayfinding systems, i.e., signs/banners, information kiosks, flower stands, vendors, streetperformers/artists to add interest, activities and excitement to the Core;

§ Transit mall rehabilitation; and

§ Pioneer Courthouse Visitors Center


Retail Core

APPROXIMATE BOUNDARIES Salmon, 9 th/10th, Burnside, Stark, Naito

DISTRICT DEFINING CHARACTERISTICS § Traditional Downtown Retail Center- Dept. Stores- Specialty Retail- Restaurants

§ Pioneer Place§ Offices§ Hotels§ Non-Traditional Movie Theaters§ Pioneer Square

EXISTING RETAIL INVENTORY 5 AND Est. 1.4 ± million SF:6

58% Specialty Retail

5 Includes GAFO (General Merchandise, Apparel, Furniture/Furnishings, Other) and Eating and Drinking. Estimates based onavailable data from APP and Norris, Beggs & Simpson. Generally excludes retail and restaurants in hotels. Compositionbreakdowns are approximate.

COMPOSITION 29% Dept./Anchor Stores 8% Eating and Drinking 4% Other Retail

EXISTING LOCATIONAL CONCENTRATION ANDNATURE OF THE SHOPPING PLACE

Dept. Stores: Meier & Frank, Nordstrom, Sak’s 5 th Ave.

Shopping Complexes: Pioneer Place, Galleria (links corewith West End); Fox (under construction)

Street Retail: Alder, Morrison & Yamhill from 2nd to Park

EXISTING TENANT MIX7 (By No. of Tenants) 30%-40% Local/Regional Tenants60%-70% National/Brand Tenants

EXISTING MERCHANDISING MIX § Major Dept. Stores§ Up-scale National Specialty Stores

EXISTING PRICE POINTS Moderate to High

CURRENT PRIMARY USER MARKETS § Close-In Residents§ Downtown Workers§ Visitors/Tourists (Families)§ Weekend Shoppers

EXISTING CHALLENGES § Insufficient parking§ Inadequate public transit on evenings and

weekends§ Scattered surface parking lots§ Pockets with no retail frontage§ Increasing rents§ Expensive rehab (upper floors)

6 Assumes Galleria is in Retail Core District inventory.7 Estimate only. Based on review of AAP retail database; information provided by local retail consultants and windshield surveys.

Table 4PORTLAND DISTRICT RETAIL STRATEGYRECOMMENDED RETAIL MERCHANDISING MIX PLAN (2010)

Retail CoreAPPROXIMATE BOUNDARIES Salmon, 9 th/10th, Burnside, Stark, Naito

ROLE Be a Nationally Recognized First Tier Downtown

SIZE AND COMPOSITION OF OPPORTUNITY xii +100,000 to 150,000 SF80% GAFO20% Eating and Drinkingxiii

Total = 1.5-1.55 M± SF

RECOMMENDED THEME § Upscale, Traditional Retail Center (High QualityMerchants)- Dept. Stores- Fashion-Oriented Uses

DESIRED NATURE OF SHOPPING PLACE § Shopping Complexes§ Galleria and Department Store Expansion/Upgrade§ Street Retail

DESIRED FUTURE LOCATIONALCONCENTRATION

In addition to existing:§ West End of Morrison, Yamhill§ Fox Tower§ Department Stores and Galleria§ Smart Park Garages§ Renovated Pioneer Courthouse Square

DESIRED TENANT MIX (by No. of Tenants)xiv 20%-30% Local/Regional Tenants70%-80% National/Brand Tenants

DESIRED MERCHANDISING MIX Additional:§ Large Format Apparel§ Electronics§ Specialty Retail§ Renovated & Retenanted Galleria§ Dept. Store Expansion (Emphasis on unique to the

market retailers)

ENHANCEMENTS BENEFITING RETAIL § More public transportation, parking§ Downtown Lighting District§ Extended and coordinated shopping hours§ Wayfinding systems, i.e., signs/banners,

information kiosks§ Transit mall rehab§ Pioneer Courthouse Visitors Center§ Street activities, i.e., flower stands, vendors, street

performers/artists 1 The lower end of net new retail space recommended, i.e., 350,000± sq.ft., reflects the increase in expenditure potential between2000 and 2010 projected in KMA’s 1998 Portland Downtown Retail Market Analysis. The upper end assumes more optimisticconditions. The allocation of the total new space addition by District and type of retail is based on KMA’s assessment of the likelyopportunities in each district.2 GAFO defined as General Merchandise, Apparel, Furniture/Furnishings, Other Specialty Retail.

HISTORIC OLD TOWN/CHINATOWN/SKIDMORE DISTRICT


The Historic Old Town/Chinatown/Skidmore District is defined as the area bounded generally bySW Stark and West Burnside Street on the south, SW Broadway on the west, NW Glisan Streeton the north and Naito Parkway on the east, as shown on Map 1. This area encompasses thehistoric origins of downtown and creates a "bridge" across West Burnside Street. Recent publicand private investments in the area, including new office and residential development and theconstruction of the Classical Chinese Garden, are generating more activity in the area now thanin the past 30 years. The often-bustling daytime activities and active nightlife scenes arecreating opportunities for additional specialty retail and entertainment uses in this emergingarea.



Historic Old Town/Chinatown/Skidmore District is a complex and diverse community. As notedabove, the area offers a mix of nightlife/entertainment activities, an enclave of ethnic food andspecialties, and a sense of local history and culture. Due to its wide mix of uses, the areaattracts both residents in the immediate neighborhood as well as visitors from outside of theregion, including tourists and attendees from the Convention Center across the River. Popularactivities include shopping at the Saturday Market, where local goods and products made in thePacific Northwest attracts residents and visitors alike, wandering through the galleries, samplingthe variety of ethnic restaurants, viewing the historic architecture, gathering at the SkidmoreFountain and exploring the emerging vibrant nighttime scene in the District. The area is alsohome to a transient population, who is served by a broad range of social services located in ornear the District. There is also increasing interest from creative service firms seeking officespace in some of the older buildings in the area.

Thus, the wide diversity of the District creates ample opportunities for new development. Thegoal of the Merchandising Mix Plan for this District is to support growth while preserving itssense of history and the richness of its diversity.

Retail Inventory

The area is estimated to contain over 550,000 sq.ft.8 of retail space. The majority of the retailspace is in restaurants, galleries, and antique shops; the remainder is in small, local and ethnicspecialty retail uses. An estimated 40% of the retail uses are eating and drinkingestablishments, with a significant number of bars, clubs, and ethnic restaurants. The area isbest known at this time, however, for the Saturday Market, which is expanding to year-roundactivity with the purchase of the Skidmore Building. It is expected that the area will also becomeknown for its Classical Chinese Garden after it opens.


There are multiple points of interest within the Historic Old Town/Chinatown/Skidmore District,including: the Saturday Market, the Skidmore Fountain vicinity, New Market Theater (a complexof small specialty retail), Chinatown on NW 4th Avenue, and NW 1st Avenue along the MAX Line.Chinatown, in particular, with the soon-to-be completed Classical Chinese Garden, is projectedto attract over 100,000 visitors each year to the area. Because the area has multiple points ofinterest, it needs a strong focus and linkages that can bring together the disparate array of retailuses in the District.


The District is dominated by local and regional independent retailers (estimated to comprise70% to 75% of the total number of retail tenants), with a few national retailers represented in themix. The keen interest in the Historic Old Town/Chinatown/Skidmore can be attributed to thelarge number of independent retailers in the area. The local flavor is further highlighted by localarts, crafts, souvenirs and other products made in the Pacific Northwest featured at theSaturday Market, galleries and antique stores in the District. Evening entertainment and theethnic specialties available in the District also attract strong interest from both visitors andresidents. At the present time, however, there is limited convenience retail in this District.

Due to the historic nature of the area, many of the buildings tend to be older and requiresubstantial renovation. Thus, without renovation, they offer a low cost opportunity for small,local entrepreneurs or artists to market their products, most of which are priced at a low tomoderate-price level. The affordable pricing of these local merchandises appeals especially toresidents and visitors to the area and contributes to the draw of this District.

Primary User Market

The Historic Old Town/Chinatown/Skidmore District draws its support from four major marketsegments, with some overlap, as follows: (1) tourists, (2) downtown workers, (3) weekendshoppers from the greater Portland Metropolitan Area, and (4) event goers, i.e., to the sports or

8 Estimated based on APP’s Business Improvement District Program retail database.

convention facilities across the River. Easy access to the District is provided by publictransportation such as the Transit Mall, and the MAX Light Rail; however, no data are availableat this time on the number of riders that embark/disembark in this District. Gathering such datamay be a recommended task for implementation in the next phase.


The greatest challenge to the Historic Old Town/Chinatown/Skidmore District is the visual andphysical barrier presented by West Burnside Street. The poor quality of the buildings, streets,and uses on West Burnside creates a strong negative first impression on visitors to the area.The wide width of Burnside is also a danger for pedestrians wishing to cross safely andcomfortably. Another source of traffic safety concern and frustration is the District's awkwardmix of signals and stop signs which are confusing, especially for visitors unfamiliar with theDistrict. As this problem is addressed, it is important to focus on pedestrian safety and accessas much as on auto access.

Additionally, while the District has incorporated the needs of the transient population into itsdevelopment, the presence of this population is a deterrent to some visitors, especially in theevening. Another significant challenge is the impact of transients on the street environment.

Another challenge of the District is the need to create a safe and attractive path to the newClassical Chinese Gardens.

As in the Core District, costly rehab of older buildings, discontinuous retail street frontage, andincreasing rents are conditions that impact on the retail viability of the area and need to beaddressed.

Development is further hindered by the fragmented property ownership. Parcels in the Districtare small, with few single large owners. Historic buildings on the parcels are an additionalconsideration in development of the property. Thus, land assemblage is difficult and costly.Current property owners have not been inclined to sell or to make investments to improve theirbuildings, given the current lack of a critical mass of residents and foot traffic in the area.

Above all, the District must address the issue of use conflicts between entertainment andresidential uses in the area, i.e., noise and parking, which are likely to worsen with theexpansion of the District in the future.


Role

The recommended role for the District is to serve as a major entertainment center, providing anopportunity for a gathering of diverse groups of people and activities. As an area forentertainment, it would reinforce the "bridge" concept by bringing together: (1) visitors from boththe Convention Center and sports complex across the river and downtown to the south,(2) residents, locally and from throughout the region, during the week and on weekends throughevents such as First Thursdays and Saturday Market, and (3) local businesses and artisans.

The District would also provide a "one-of-a kind" regional retail experience, serving as a venuefor showcasing local talent and products, and thereby becoming a regional destination in its ownright. An added dimension is the ethnic markets that the District also serves. The District isdirectly across from the Japanese Historical Plaza across the Naito Parkway, which is a majordestination for Japanese residents and visitors in general. Though limited, the existingChinatown still serves an important commercial and social role in the Chinese community. Withthe Classical Chinese Garden in place and a Chinese Community Center under planning,Chinatown can be solidified and enhanced to become a true working and functioningcommercial and cultural center for Asians in the Greater Portland Metropolitan Region.


Given the multi-faceted role of the District, it is anticipated that the area has the potential ofadding another 50,000 sq.ft. to 75,000 sq.ft. of retail space, for a total of around 600,000 sq.ft. to625,000± sq.ft. in the area. It is recommended that the additional retail space include a mix oflocal specialty retail, neighborhood services and eating and drinking uses.

Recommended Theme

The recommended theme for the District, consistent with its role as a "bridge" betweenDowntown and the Convention Center across the river, would be entertainment, with localemphasis. A complementary theme is the inclusion of ethnic/Asian specialty retail and Oregon-themed retail, which would add to the richness of the urban experience in this District.


The nature of the retail is expected to be street retail (i.e., along NW 3rd and 4th Avenues), withthe exception of Saturday Market, which is clustered under the Burnside Bridge area andaround 1st Avenue, Skidmore Fountain area. Certain Saturday market shops are also locatednow in the Skidmore Building all week.


This new mix of uses should be concentrated at three locations, with the strongest possiblelinkage to each other: (1) the Chinatown area generally between NW 3rd and 4th Avenues

connecting to the Chinese Classical Garden, (2) the vicinity of the Skidmore Fountain along NW1st Avenue and the Light Rail, and (3) along SW Ankeny and Ash Streets, to SW 3rd Avenue(Chinatown), connecting to the Chinatown Gate at NW 4th and Burnside. In addition, retailshould also be concentrated around each of the three MAX Light Rail Stations, with sufficientintensity to capture the interest of rail passengers, especially those traveling between theConvention Center, downtown, and other destinations to the south and west.

Tenant Mix

The mix of tenants should remain essentially the same as existing, i.e., with about 70% to 75%local/regional independents and 25% to 30% national/brand tenants. It is recommended,however, that a stronger emphasis be placed on attracting national or regional brandrestaurants, which are often able to create stronger draw of visitors to an area because of namefamiliarity.

Merchandising Mix

The types of tenants recommended include a range of small "festive" retail tenants, such as“fun” food (e.g., soda fountains, diners, pretzel shops) and specialty retail (e.g., ethnic andartisan shops, craft workshops, candle shops, kite stores, chocolate factories) that has theability to entertain and interest visitors rather than merely sell traditional goods. The intent is tocreate a fun, events-oriented environment and destination for families and a broad range of agegroups.

Another type of tenant to be encouraged are restaurants that succeed in taking advantage ofthe multi-ethnicity of the District to create “special of the house” culinary originals, i.e., bycreatively combining or "fusing" together different ethnic and traditional dishes. The area canalso benefit from the addition of several large format, national or regional brand types ofrestaurants, which, because of their more recognizable name and more powerful marketingability, will be able to attract a broader clientele to the area.

The mix of tenants should also include local neighborhood commercial uses, especially agrocery store and a drugstore, to serve the needs of the emerging residential population in theYards at Union Station.


Key improvements that will likely enhance the retail concept recommended for Historic OldTown/Chinatown/Skidmore include those highlighted by the Task Force:

§ Information kiosks and wayfinder signage, especially around the three MAX Light RailStations;

§ Transit Mall improvements to enhance streetscape, increase pedestrian safety and revitalizeretail storefronts;

§ Development of “festive” services for visitors, i.e., souvenirs/gifts, food options (i.e. sodafountains), film processing;

§ Façade improvement;

§ Building lighting;

§ Streetscape improvements; and

§ Burnside improvements.


Historic Old Town/Chinatown/Skidmore

APPROXIMATE BOUNDARIES Stark/Burnside, Broadway, Glisan, Naito

DISTRICT DEFINING CHARACTERISTICS § Nightlife/Entertainment§ Chinatown§ MAX line and Transit Mall§ Proximity to Convention Center and Rose Quarter§ Historic Buildings and Skidmore Foundation§ Saturday Market§ “Made in Oregon”§ New Office and Residential§ Galleries§ Services for Transient Population

EXISTING RETAIL INVENTORY 9 ANDCOMPOSITION

Est. 550,000 ±SF10


EXISTING LOCATIONAL CONCENTRATIONAND NATURE OF THE SHOPPING PLACE

Multiple Points of Interest but No Single Focus: SaturdayMarket/Skidmore Fountain, New Market Village, Chinatownon 4 th Ave, 1st Ave MAX Line

EXISTING TENANT MIX11 (By No. of Tenants) 70%-75% Local/Regional Tenants25%-30% National/ Brand Tenants

EXISTING MERCHANDISING MIX § Evening Entertainment§ Restaurants, Food§ Local Artists & Products§ Ethnic Groceries§ Souvenirs

EXISTING PRICE POINTS Low to Moderate

CURRENT PRIMARY USER MARKETS § Tourists§ Downtown Workers§ Weekend Shoppers§ Event Goers§ Nearby Residents

EXISTING CHALLENGES § Burnside Street barrier§ Visitor and Shopper compatibility with transient

population§ Creating attractive path to Classical Chinese Gardens§ Fragmented property ownership§ Costly rehab of older buildings

9 Includes GAFO (General Merchandise, Apparel, Furniture/Furnishings, Other) and Food. Estimates based on available date fromAPP and Norris, Beggs & Simpson. Generally excludes retail and restaurants in hotels. Composition breakdowns are approximate.10 Based on APP’s Business Improvement District Program retail database.11 Estimate only. Based on review of AAP retail database; information provided by local retail consultants and general survey

observations.

§ Lack of continuous retail frontage§ Increasing rents

TABLE 6

PORTLAND DISTRICT RETAIL STRATEGYRECOMMENDED RETAIL MERCHANDISING MIX PLAN (2010)


APPROXIMATE BOUNDARIES Stark/Burnside, Broadway, Glisan, NaitoROLE Be:

(4) Entertainment/Arts District Oriented to Convention &Downtown Visitors

(5) Host to Saturday Market(6) Asian Marketplace

SIZE AND COMPOSITION OF OPPORTUNITY 12 +50,000 to 75,000 SF30% Specialty Retail30% Neighborhood Commercial40% Eating and DrinkingTotal = 600,000 – 625,000 ±SF

RECOMMENDED THEME § Entertainment§ Asian Specialty Retail and Entertainment§ Oregon-themed Retail

DESIRED NATURE OF SHOPPING PLACE Street Retail (3rd and 4 th), with connection to 5 th and 6 th

bus stops.


Three new concentrations, with strong links created:§ Chinatown’s 4 th Ave (Path to Classical Garden)§ Skidmore Fountain Vicinity (SW1st along light rail)§ E/W link street-Ankeny/Ash

DESIRED TENANT MIX (by No. of Tenants)13 70%-75% Local Regional Tenants25-30% National/Brand Tenants (More RestaurantsEmphasis

DESIRED MERCHANDISING MIX New:§ Festive (Family-Oriented) Retail/ Entertainment§ Ethnic “Fusion” Restaurants§ Neighborhood Commercial i.e., grocery stores, drug

stores and dry cleaners§ Asian Market

Expansion:§ Saturday Market

ENHANCEMENTS BENEFITING RETAIL § Information kiosks and “wayfinder” signage§ Transit Mall improvement§ Services for visitors, i.e., souvenirs/gifts, food

options, film processing§ Façade improvements§ Building light§ Streetscape improvements§ Burnside improvements

12 The lower end of net new retail space recommended, i.e., 300,000± sq.ft., reflects the increase in expenditure potential between2000 and 2010 projected in KMA’s 1998 Portland Downtown Retail Market Analysis. The upper end assumes more optimisticconditions. The allocation of the total new space addition by District and type of retail is based on KMA’s assessment of the likelyopportunities in each district.13 Based on KMA’s assessment of each District’s existing characteristics and opportunities.

PEARL DISTRICT


The Pearl District is loosely defined as bounded by West Burnside Street on the south, I-405 onthe west, NW Lovejoy and NW Hoyt Streets on the north, and NW Broadway on the east.Historically an older, industrial area, the District is currently undergoing rapid transformation to a"Soho" of Portland. (See Map 1.) Many of the older warehouses have been converted tohousing, commercial, and other non-industrial uses. As the Pearl District grows, its popularlocales will continue to attract shoppers and diners to the area. The challenge will be tomaintain the charm of the District, which comes from its industrial ambiance combined withtrend-setting retail shops and restaurants, and to enhance this unique mix of retail uses whilestill serving the retail needs of the new residents.



The District has an eclectic blend of industrial uses and warehouses, many of which have beenconverted to specialty retail, commercial and residential uses. The mix of specialty retail in thePearl, which consists of large number of home furniture and furnishing stores (such as LuxLighting, Blue Pear, French Quarter, What the Wind Blew In), antique stores, garden shops, andgalleries, can also be called "lifestyle" retail. In the case of the Pearl, the mix of retail reflectsthe upscale taste and preferences of the new residential population in the area, which tends tobe young, affluent, highly educated, professional single or couple households living in thenewly-developed lofts, apartments or condominiums at the northern edge of the District.Support from this new population contributes to the success of uses, such as Powell’s Books, inthe area. Cultural institutions in the District, such as Pacific Northwest College of Art (PNCA)and Portland Institute of Contemporary Art (PICA), contribute to the District’s “Soho”environment.

There are also a number of restaurants in the area, many of them with an ethnic theme. Thesetrend-setting restaurants, as well as the proposed redevelopment of the Brewery Blocks, willcontinue to appeal both to residents in the area and workers in downtown nearby.

The "Soho" environment of the area and the availability of large, older warehouses forconversion have also attracted several internet companies, multi-media and other creativeservice firms, the largest of which is the advertising firm of Wieden and Kennedy. It isanticipated that additional creative/high tech service firms will continue to be attracted by thenon-traditional lifestyle of the Pearl District as the area expands.

Retail Inventory

The District is estimated to have retail and restaurant space inventory of over 650,000 sq.ft.14,the bulk of which is in converted warehouse space. This inventory includes retail on both thestreet and upper levels. The largest, single, stand-alone retail space is Powell's Books, whichhas just completed its expansion for a total of 68,000 sq.ft. and houses over 600,000 books.The other retail space, such as home furniture and galleries, is typically mid-size; the remaindertends to be smaller, infill spaces along the street fronts.

There are a limited number of retail services catering to residents in the area. However, plansare currently underway to include a specialty food market in the proposed Brewery Blocks.


The retail uses in this District are concentrated primarily between three streets: NW Glisan, NWHoyt, and NW Everett, with a smattering to the south. However, there is no linkage betweenthis retail location cluster and the single, most visible landmark currently existing in the entireDistrict, Powell's Books. It is expected that the Central City Streetcar lines and the developmentof the Brewery Blocks will focus growth along NW 10th and 11th as well.


As in the Historic Old Town/Chinatown/Skidmore District, the retail tenants in the Pearl arepredominately local or regional, independent tenants who comprise an estimated 70% to 75% ofthe total retail tenant inventory. They include primarily major destination retail uses, such asbooks (Powell’s), home furnishings, antiques/arts and restaurant establishments. A number ofthe local tenants, such as Sheepskin of Oregon, Gallery 33, Blue Pear, feature local talents andproducts. Others, such as French Quarter and Gallery Zen, offer a more international mix ofmerchandise. Thus, pricing for the goods in the Pearl varies widely, depending on the targetclientele, but generally falls in the moderate to high range.

Primary User Market

The primary support for the Pearl District appears to come from residents and workers fromwithin the District as well as from downtown. Residents from the larger metropolitan area arealso attracted to the District as a retail destination on weekends. A number of the workerswithin the District are from 24-hour multi-media/service firms. Thus, these workers, togetherwith the area's residents, are able to provide more after-hours and weekend support for thebusinesses in the area. To date, visitor support does not appear to be significant in the District. 14 Based on the City’s 1999 Pearl District Parking Study Business Survey. Excludes retail services, auto-related and other non-

GAFO retail. Includes approximately 50,000 to 60,000 sq.ft. of gallery space.

(However, a market support survey is recommended to be included in the work for Phase III,Implementation Strategy for the District, to help better understand the target market for theproposed retail uses so that the specific nature and type of retail can be identified.)


As in the Historic Old Town/Chinatown/Skidmore District, West Burnside creates a visually andfunctionally uninviting "Front Door" into the Pearl. The high speed and volume of traffic alsodiscourage pedestrian crossing between West Burnside and the West End.

Further, with the continued addition of residential units, the increasing residential density andthe growing number of visitors attracted to the District, concerns are emerging over theadequacy of parking and the future quality of life in the area. Additional concerns of theresidents, as in the Historic Old Town/Chinatown/Skidmore District, are the increasing conflictsbetween the entertainment and residential uses, i.e., noise and parking, in the Pearl.

As in the other Districts, the costly rehab of older buildings, discontinuous retail street frontagesand increasing rents are also challenges that need to be addressed in the Pearl.


Role

The role envisioned for the Pearl District is to become a major trendsetting Lifestyle/"UrbanHome and Garden" center for the Portland Metropolitan area. It can also serve a dual role: (1)as the "overflow" area for similar "lifestyle" types of retail uses and trend-settingrestaurants/bars from the nearly-built out NW 23rd Avenue retail area further west, and (2) as thearea for complementary uses to NW 23rd Avenue when the District is connected to 23rd by theStreetcar. The area, in essence, will become the retail base for supporting the new residentialcommunity being created in the vicinity of downtown. This concept — that of creating a newresidential environment in close proximity to a major employment center — is one of the keyprecepts of the “New Urbanism" approach in planning new communities today.

A secondary role of the District is to provide retail services to incubator firms, such as multi-media or creative service start-ups locating in the area. Employers from these firms oftengenerate demand for 24-hour retail services, especially eating establishments, which willincrease after-hour activities in the District.


The rapid transformation of the Pearl District from old industrial to new retail and residentialuses is anticipated to continue. Given the existing under-utilization of properties and the strong

interest in the area, the District has the potential of substantially increasing its current inventoryof specialty retail space. In addition, the estimated 1,200 additional residential units proposedfor the District as part of the River District Urban Renewal Plan, will intensify retail demand inthe area.

The brunt of this demand will be met in large part by the proposed Brewery Blocksdevelopment, which includes plans for more than $250 million of housing, office and retail space(including a grocery store) on five blocks of the old Blitz-Weinhard Brewery. The transformationof these blocks into a major retail/entertainment and upscale residential community will create akey link between the Pearl District, West End, Historic Old Town and the Core Districts. Inessence, the Brewery Blocks can potentially have a significant catalytic effect on that part ofdowntown.

Thus, opportunities exist for development of an estimated 100,000 sq.ft. to 125,000± sq.ft. ofspecialty retail and eating and drinking plus another 50,000± sq.ft. of neighborhoodretail/commercial uses serving residents of the area. Much of the new space is anticipated tobe accommodated in the Brewery Blocks development . Thus, the total amount of retail spacein the Pearl District by the Year 2010 is projected to be in the 800,000 to 825,000 sq.ft. range.However, once the Brewery Blocks development is successfully established, the District has thepotential to significantly increase its share of the overall retail demand in the downtown.

Recommended Theme

The recommended theme for the District is trendsetting, "Lifestyle" retail, with emphasis on usescatering to the Home and Garden, such as home furniture and furnishings, galleries andantiques. The theme can be complemented with "trend-setting" specialty retail and restaurantuses to reinforce the "Soho" image for the area.


In addition to street retail and Powell's Books, the Brewery Blocks will become a majordestination place within the Pearl District. The types of uses envisioned in this project, such asentertainment, food and specialty retail, should create a linkage — physical, visual and/orfunctional — to Powell's Books and to Central City Streetcar stops. The goal is to intensify thesynergy and activities created by the proximity of these two powerful anchors so that thebenefits can spill far over to the rest of Pearl as well as to the surrounding districts (i.e., WestEnd and Historic Old Town/Chinatown/Skidmore).


The current concentration of retail between NW Glisan, NW Hoyt and NW Everertt Streetsshould be extended to NW 10th and 11th as eventual connectors to Powell's Books and the

Brewery Blocks at the southern end of the District. If successful, the 10th and 11th AvenueStreetcar extension can also spill over into the West End District, thereby creating a retaillinkage between the two areas.

Tenant Mix

The mix of tenants should remain essentially the same as existing, i.e., with about 70% to 75%local/regional independents. It is recommended, however, that a stronger emphasis be placedon attracting national brand furniture/furnishings tenants appropriate to the market, whichtypically can draw from a broad, regional base.

Merchandising Mix

It is recommended that local and regional independent tenants continue to be heavilyrepresented in the future tenant mix. However, it is also recommended that the mix includenational brand home furniture or furnishing stores. The national/international presence of theseuses can help promote, reinforce, and further establish the District as a major, indisputable“Lifestyle” retail destination.

Complementary uses include both existing as well as additional trend-setting restaurants,contemporary art galleries, showroom, and artisan workshops. Resident-serving uses, such asgrocery stores, cleaners, print/copy shops, can also contribute to the retail diversity of theDistrict.


The District Retail Strategies Task Force recommended a number of improvements to theDistrict, including the following:

§ Sidewalk and streetscape improvements with flowerpots, benches, information kiosks, and"way finders" to guide people to the stores;

§ Improvement of visual image of parking lots, such as fences at the Post Office complexes;

§ Signs and banners to direct pedestrian further into the District from streetcar stops, Powell'sand the Brewery Blocks development, in order to connect the streetcar with surroundingretail;

§ Lighting appropriate to the District’s theme;

§ Additional bus service;

§ Short-term parking facility; and

§ As the Pearl and River Districts grow, improved access via public transit.


Pearl

APPROXIMATE BOUNDARIES Burnside, I-405, Lovejoy/Hoyt, Broadway

DISTRICT DEFINING CHARACTERISTICS § Lifestyle Retail- Powell’s Books- Home Furnishing/ Antiques- Art Galleries

§ Restaurants§ Loft Housing & Renovated Warehouses§ Entertainment§ Pacific NW College of Arts and Portland Institute of

Contemporary Arts§ On Edge of Major Residential New Growth

EXISTING RETAIL INVENTORY 15 ANDCOMPOSITION

Est. 650,000 ±SF16

80% GAFO12% Eating and Drinking8% Galleries

EXISTING LOCATIONAL CONCENTRATION ANDNATURE OF THE SHOPPING PLACE

Glisan, Hoyt, & Everett

EXISTING TENANT MIX17 (By No. of Tenants) 70%-75% Local/Regional Tenants25%-30% National/ Brand Tenants

EXISTING MERCHANDISING MIX § Destination Retail: Books (Powell’s)§ Home Furnishings, Antiques§ Art§ Restaurants

EXISTING PRICE POINTS Moderate to High

CURRENT PRIMARY USER MARKETS § District Workers§ Nearby Residentsy§ Downtown Workers§ Weekend Shoppers

EXISTING CHALLENGES § Burnside Street barrier§ Negative image of Burnside as “Front Door” to

District§ Insufficient street parking and street lighting§ Meshing of entertainment with residential (noise)§ Costly rehab of older buildings§ Lack of continuous retail frontage§ Increasing rents

15 Includes GAFO (General Merchandise, Apparel, Furniture/Furnishings, Other) and Food. Estimates based on available date from APP and Norris,Beggs & Simpson. Generally excludes retail and restaurants in hotels. Composition breakdowns are approximate.16 Based on the City’s 1999 Pearl District Parking Study Survey, excludes retail services and auto related uses.17 Estimate only. Based on review of AAP retail database; information provided by local retail consultants and general survey observations.

TABLE 8PORTLAND DISTRICT RETAIL STRATEGYRECOMMENDED RETAIL MERCHANDISING MIX PLAN (2010)

PearlAPPROXIMATE BOUNDARIES Burnside, I-405, Lovejoy/Hoyt, Broadway

ROLE Be:4. Trend-setting Lifestyle Retail Hub for Metro Area5. “Trendy” Restaurant/Bar Area6. 24-Hour Creative Services (Multi-Media).Com Incubator Area

SIZE AND COMPOSITION OF OPPORTUNITY 18 +100,000 to 125,000 SF60% Specialty Retail40% Eating and Drinking+50,000± of Neighborhood Commercial/Eating and DrinkingTotal = 800,000 – 825,000 ± SF

RECOMMENDED THEME § Trend-Setting Lifestyle (Home & Garden) - with national and regionalbrand home furnishings

DESIRED NATURE OF SHOPPING PLACE § The Brewery Retail Complex§ Street Retail§ Rehabbed Warehouse Retail


In addition to existing:10th & 11th as north/south connectors of Powell, Blitz, Glisan, and Everett

DESIRED TENANT MIX (by No. of Tenants)19 70%-75% Local/Regional Tenants25%-30% National/Brand Tenants (More Home Furnishings Emphasis)

DESIRED MERCHANDISING MIX Expansion:§ Home Furniture/ Accessories/Furnishings§ Trend-Setting Restaurants§ Contemporary Art Galleries§ Neighborhood Commercial, i.e., grocery stores, cleaners, print copy

shops, etc.

ENHANCEMENTS BENEFITING RETAIL § Sidewalk and streetscape improvements with flowerpots, benches,information kiosks, and “way finders”

§ Improvement of visual image of parking lots§ Signs and banners§ Lighting appropriate to District theme§ Additional bus service§ Improved access via public transit§ Short-term parking facility

18 The lower end of net new retail space recommended, i.e., 350,000± sq.ft., reflects the increase in expenditure potential between 2000 and 2010projected in KMA’s 1998 Portland Downtown Retail Market Analysis. The upper end assumes more optimistic conditions. The allocation of the total newspace addition by District and type of retail is based on KMA’s assessment of the likely opportunities in each district.19 Based on KMA’s assessment of each District’s existing characteristics and opportunities.

WEST END/CROSSROADS AND CULTURAL DISTRICTS

The overall West End District is generally defined by West Burnside on the north, I-405 to thewest, SW Market Street on the south, and SW 9th on the east. It overlaps the Retail CoreDistrict along its northeastern edge. The West End actually is comprised of two distinctsubdistricts: Cultural (south end) and Crossroads (north end). The boundaries of thesesubdistricts are shown on Map 1.

Each of the subdistricts within the West End is characterized by a different type of land use andserves a different function. For example, the Crossroads area is at the only 100% light railcorners in the City where it intersects with the Central City Streetcar. It is also at the west endof the Fareless Square. Additionally, it has extraordinary auto access. The Cultural area is thecenter of the City's major cultural facilities, including the Oregon History Center, Portland Centerfor the Performing Arts, Portland Art Museum, and the Central Library. The rest of the WestEnd is predominately residential, housing downtown employees, retirees as well as the studentpopulation from Portland State University nearby.

The focus of the West End Retail Merchandising Mix Plan is on the Crossroads and CulturalSubdistricts, where a clear, well-defined retail image or theme has yet to be defined.

The following sections describe the existing retail characteristics in the Crossroads and Culturalareas and the recommended retail concept for each in the future.

West End Crossroad Subdistrict

1. Definition of Subdistrict

The Crossroad Subdistrict is located at the northern end of the West End, bounded generally bySalmon Street, SW 13th Avenue, West Burnside Street and SW 9th Avenue. As discussedabove, this area is served by the MAX light rail, the Central City Streetcar, local buses, andprivate autos. The intersection of these lines bisect the district into a number of sub-quadrants(see map). As a result of this fragmented street fabric, there is no cohesive use pattern in thisarea and few, if any, pedestrian amenities. The goal of the Retail Merchandising Mix Plan is toweave the disparate retail elements of this Subdistrict together into the overall urban fabric ofthe downtown and, in the process, define a retail form and purpose for the area.

2. Existing Retail Characteristics

Subdistrict Defining Characteristics

Due to its overlap with the Retail Core and the Pearl District, the West End CrossroadsSubdistrict is often viewed as a transitional area between these two major areas of activities. Assuch, it is the breeding ground for a wide variety of uses. Existing uses in the area are highlymixed, ranging from telecommunication companies to apparel, home furnishings, other specialtyretail and retail services. Though not as trend-setting as the Pearl, this area is also home to alarge number of restaurants featuring Pacific Northwest specialties, such as Jake's Grill andSouth Park, and ethnic cuisine, such as Bush Garden and Suriya. The area also has a heavyconcentration of bars and clubs at the north end. Other uses in the area include a mix ofantiques, art galleries, home furnishings, toys and gifts, and beauty/barber shops. Thedistinguished Heathman Hotel, with its well-known restaurant, is also a major landmark thatserves the subdistrict.

The area is also distinguished by its mix of building "styles", which has multi-level architecturallyinteresting structures alongside single level, non-descript, newer buildings. In addition, thestreet frontages are often interrupted by surface parking lots so that the retail flow is significantlydiscontinuous.

Retail Inventory

Although there are a large number of specialty retail uses in the Crossroads area, they areprimarily small tenants. The larger tenants are generally restaurants. The estimated total retailspace inventory in this area is between 150,000 sq.ft. to 200,000 sq.ft.20, all on the street level.(The Galleria is included in the Core District square footage.)


In general, retail uses such as apparel, specialty retail and restaurants, are concentrated alongSW Morrison Street and SW 9th Avenue, from SW Alder and SW Taylor Streets, which are busyarterials with little pedestrian amenities. However, there is one street segment — SW Morrisonbetween SW 9th and 11th — which offers a nice cluster of quality retail and a pedestrian-orientedstreetscape environment not typically found in this Subdistrict.


The types of goods offered in this Subdistrict vary from value retail to eclectic, or "edge", retail,priced generally in the moderate range. As expected, the area is dominated by local

20 Estimated based on APP’s Business Improvement District retail database.

businesses that prefer the lower rents in this area as opposed to retail space in the Core. Anestimated 90% to 95% of the existing number of retail tenants are local or regional tenants. Theremaining 5% to 10% are estimated to be national or brand tenants.

Primary User Market

Primary users include office workers downtown, close-in residents and visitors to the CivicStadium who are attracted by the eclectic mix of edge retail and restaurants in the area.

Challenges of the Subdistrict

A major challenge is to convert the Galleria into a positive force for the West End CrossroadsSubdistrict. The limited tenancy of the Galleria has impacted the perceived economic viability ofthe area. The recommended renovation and retenanting of the Galleria , i.e., with large formatand/or national/regional brand retail tenants, will provide an opportunity to restore investorconfidence in the area. The challenge for the Subdistrict is to find ways to leverage the futuresuccess of the Galleria (if achieved) in the overlapping Core District, such as upgrading thefaçade of the 10th and Yamhill Garage nearby.

As in the other retail districts, another challenge is the visual and physical barrier created by theBurnside Triangle which affects both the image and the traffic and pedestrian circulation at theintersection of this District with the Pearl District.

A third challenge of the Subdistricts is the costly rehabilitation required of the older buildings,which often leads to increased rents.

Additional challenges, as in the other Districts, are the interrupted retail street frontage and theincreasing rents in the area which impact the retail viability of the area.

Above all, the dispersed land ownership — with no dominant private landowners and asignificant number of non-profit owners, such as the First Presbyterian Church, United Way, andYWCA — creates a layer of complexity in coordinating any major development activities in thearea, i.e., assembling land for a project, establishing a Business Improvement District, achievingconsensus of future District goals, etc.


Role

The recommended role for the West End Crossroad Subdistrict is to provide "incubator" spacefor new, local start-ups, capitalizing on the area's downtown location, its proximity to the Core,Cultural and Pearl Districts, its access to the streetcar network, and the still relatively lower

costs of the area. In this sense, the area would continue to function as a "crossroad" betweenthe various retail concentrations in the Downtown Core and the Pearl Districts by providing themissing retail links needed to connect these other areas.


The Crossroads Subdistrict has a number of underutilized or vacant properties. If developmentopportunities can be successfully marketed, the area has the potential of increasing its currentinventory of retail space by an estimated 50,000 sq.ft. to 75,000± sq.ft. to a total of 250,000 to275,000 sq.ft., with the bulk of the space tenanted by small, local retailers. It is anticipated thatthe Subdistrict will be able to attract large and/or national/regional brand tenants at strategicand/or high profile locations, such as the Galleria, at this time.

Recommended Theme

The recommended theme should continue to be a mix of eclectic local specialty retail, with anemphasis on "incubator" or start-up retail uses, services and restaurants.


Including the Galleria, the retail should remain street retail, with infills concentrating along SW10th and 11th Avenues and along the existing retail/restaurant row on SW Morrison Street andSW Alder Street.


In addition to street retail, i.e., SW 9th and 11th Avenues between SW Taylor and Alder, SWMorrison Street, and SW Alder between SW 11th and 12th Avenue ("Singer Block”), anotherpotential retail concentration would be the site of the Federal Reserve Building. The FederalReserve Building is strategically located near the northern junction between the West EndCrossroads Subdistrict and the Burnside Triangle. Currently, the Building is set back with asurface parking lot abutting the SW 10th Avenue frontage. Part of the Federal Reserve Banksite could be developed with wraparound retail or other use, such as a museum, to:

1. Provide interest at the street level for pedestrians,

2. Create a major retail anchor at the north end of the Subdistrict to energize the Subdistrict,and

3. Provide a continuous retail frontage along 10th between the Crossroads and the BurnsideTriangle, which would serve as a link between the West End and the Pearl District.

An additional node of retail activities is the Smart Park Garage on 10th Street, which could offerrelatively inexpensive retail space with convenient parking access which could also strengthenthe existing retail in the area.

Tenant Mix

The mix of local versus national tenants (exclusive of the Galleria) is recommended to remainrelatively the same (i.e., 90% to 95% local/regional tenants and 5% to 10% national/brandtenants), as this area is anticipated to provide opportunities for entry or "incubator" types ofretail tenants, which are primarily local/regional independents.

Merchandising Mix

The recommended merchandising mix should be an expansion of the retail/restaurant usescurrently along SW Morrison Street, the boutique uses between SW 11th and 12th Avenue onAlder ("Singer" block), and the cutting "edge" retail uses, bars and clubs in the vicinity of theBurnside Triangle. These are the strongest retail uses in the Subdistrict and should be built onto create a sufficient mass of retail interest in the area. Other retail uses, such as electronicstores, can also add diversity to the mix.


Among the enhancements recommended by the DRC Task Force for West End are thefollowing:

§ More short-term, visitor parking;

§ Elimination of surface parking lots, which are disruptive to pedestrian flows;

§ Attractions (sign/banners, information kiosks, etc.);

§ Sidewalk Cafes, flowerpots, benches, vendors along 10th and 11th;

§ Organization of diverse interest groups in the District to represent a single, unified voice;and

§ Establish links with the Streetcar and MAX.

West End Cultural Subdistrict

1. Definition of Subdistrict

This Subdistrict is defined generally as the area in the southern portion of West End, boundedby SW Market Street on the south, SW 12th Avenue on the west, SW Salmon Street on thenorth, and SW Broadway on the east. As the cultural center of the City, the area generatessubstantial foot traffic. The exception is the south end of SW 10th where the blocks arerelatively longer and thus appear rather foreboding and unfriendly to pedestrians. Regardless,at the current time, there is little retail and amenities in this Subdistrict to attract and retainvisitors to facilities in the area.

2. Existing Retail Characteristics


This Subdistrict is dominated by cultural and civic uses, including the Multnomah County CentralLibrary, the Portland Art Museum, the Portland Center for the Performing Arts, SchnitzerConcert Hall, and the Oregon Historical Society. The Heathman Hotel and restaurant is anotable landmark serving this Subdistrict. The area also has a number of churches in or at itsperiphery, including the First Unitarian Church, St. James Lutheran Church and the 6th Churchof Christ Scientist. It is also in close proximity to the Portland State University (PSU). All theseresources draw visitors to the area.

However, these facilities are not centralized and thus lack the synergy and critical mass neededto truly establish the area as a nationally recognized destination of arts and culture.

Retail Inventory

The area has an estimated 100,000 sq.ft.21 of retail space at the present time, consisting of theSafeway store, some small food and specialty retail uses catering to the PSU students nearby,and gift shops and bookstores at several of the cultural facilities in the District.

Location Concentrations and Nature of Shopping Place

There are a few scattered retail uses along 10th and the Park Blocks, in the vicinity of PSU, andwithin the cultural facilities. Otherwise, retail uses in the area are minimal and discontinuous.

21 Estimated only. No actual survey data available.


An estimated 90% to 95% of the retail tenants are local and regional tenants. National tenants,the major of which is Safeway, comprise the remaining 5% to 10%.

The few food and retail uses in the area are targeted primarily at the student and retireepopulations nearby and thus tend to be at the moderate end of the price range. There are alimited number of book and gift shops associated with the museum and other facilities, whichtend be at the higher end of the range.

Primary User Market

The area generally consists primarily of tourists, such as visitors to the cultural and civicfacilities and churches in the Subdistrict, students and residents. This could change when theCentral City Streetcar begins operations in Spring 2001.

Challenges of the Subdistrict

The major challenge in this Subdistrict is to create sufficient and continuous retail mass andamenities so that it becomes an exciting, vibrant, and interactive destination for visitors to thearea. An area requiring special attention is SW 10th Avenue, where a combination of retailclusters and urban design may be needed to visually and functionally break up the long,uninviting block frontages at its south end. The retail clusters can also serves as links to thevarious facilities in the Subdistrict.

The area suffers at present from insufficient parking. Other challenges include the increasingcommercial rents in the District, which impact on the viability of many of the existing uses, andthe prohibitive costs of rehabbing/upgrading the older buildings in the District.


Role

The area will reinforce and affirm its role as the cultural center of the region. Retail uses willcomplement and serve the existing cultural/civic uses.


Until there is a significant increase in the number of visitors to the area, the amount of retailuses is expected to remain nominal, with a slight addition of specialty retail and food by Year2010.

Recommended Theme

The recommended theme for the Subdistrict is specialty retail uses complementary to thecultural/civic uses in the area, such as bookstores and gift shops and supportive entertainmentuses such as sidewalk cafes and restaurants catering to the arts and cultural crowd.


Retail in this area should remain primarily street retail, although there may be a few clusters inthe vicinity of the more active cultural/civic facilities, such as the Performing Arts Center and theLibrary.

Location Concentration

Additional retail in the future should concentrate on the Park Block "spine" connecting most ofthe cultural facilities to the rest of West End and to downtown. Thus, this retail concentrationshould extend from 10th to Broadway.

Tenant Mix

The tenant mix recommended is to maintain a high proportion of local/regional independenttenants (i.e., 90% to 95%) relative to national/brand tenants (5%-10%).

Merchandising Mix

The merchandising mix should remain primarily local, with a mix of sidewalk cafes, boutiquehotels, restaurants featuring local "chef" talents, art galleries and shops featuring local artists,and possibly the addition of some small performing arts venue, i.e., "Off-Broadway" concepts.The purpose is to create a variety and mix of retail that would add interest and excitement to thearea.


Enhancements that would support the retail concept for this District, as recommended in thePhase I District Retail Strategies Report, include the following:

§ "Kid-oriented" area between library and museums;

§ Sidewalk cafes, street artists, food and flower stands; and

§ Streetcar links.

Remainder of West End District

For the remainder, or southern portion, of the West End — which is predominately residential —the retail concept is clear. The area currently lacks local-serving retail; thus, the RetailMerchandising Mix Plan for this area recommends City support and encouragement ofadditional convenience retail uses in the Subdistrict, such as food, drugs, and services tosupport the local residential population. Planning is underway for the development of aneighborhood center anchored by a 40,000 sq.ft. Safeway Store at Jefferson Street, SW 10th

and 11th Avenue. Additional local-serving retail uses at this location will help to transform thiscenter into a major convenience retail destination for residents in the area. The nature andtiming of the City support will be addressed in the Implementation Plan to be prepared in thenext phase, Phase III, for this Subdistrict.


West End/Crossroads and Cultural Districts22

APPROXIMATE BOUNDARIES Crossroads(Yamhill, 12th, Burnside, 9 th/10th)

Cultural(Jefferson, 11th, Yamhill/Salmon, Broadway)

DISTRICT DEFININGCHARACTERISTICS

§ Adjacency to Retail Core and Pearl§ Local Specialty Tenants (Eclectic)§ Ethnic Restaurants-“Restaurant Row”§ Street Car Line Under Construction§ Governor Hotel

§ Portland Art Museum, Oregon HistoricalSociety

§ Churches§ Proximity to PSU§ Residential§ Heathman Hotel§ Portland Center for the Performing Arts

(PCPA)

EXISTING RETAIL INVENTORY 23

AND COMPOSITION

Est. 200,000± SF3,4


Est. 100,000± SF24

Est. 95% GAFO5% Eating and Drinking

EXISTING LOCATIONALCONCENTRATION AND NATUREOF THE SHOPPING PLACE

Street Retail: Morrison from 9 th to 11th, 10th

from Alder to Taylor, Yamhill from Park to 10th

and Burnside Triangle

Street Retail: Broadway to 10th and along thePark Blocks

EXISTING TENANT MIX25 (By No.of Tenants)

90%-95% Local/Regional Tenants5%-10% National/Brand Tenants

90%-95% Local/Regional Tenants5%-10% National/Brand Tenants (Safeway)

EXISTING MERCHANDISING MIX § Eclectic Tenant Mix§ Destination Retail: Finnegan’s; Real

Mother Goose; Art Media§ Thrift, 2nd Hand

§ Convenience Store/Safeway Grocery§ Oregon Historical Society and Portland Art

Museum Bookstores and Gift Shops

EXISTING PRICE POINTS Moderate Moderate

CURRENT PRIMARY USERMARKETS

§ West End Residents§ Downtown Workers§ Event Goers (especially Civic Stadium)

§ Event Goers§ Restaurant Goers§ Residents

EXISTING CHALLENGES § Conversion of Galleria into a positiveforce

§ Upgrade of 10th and Yamhill Garage§ Burnside Street as barrier§ Costly rehab of older buildings§ Dispersed land ownership§ Lack of continuous retail frontage§ Increasing rents

§ Insufficient parking§ Lack of retail mass and linkages§ Costly rehab of older buildings§ Lack of continuous retail frontage§ Increasing rents

22 These districts are in addition to the residential neighborhood in the southern portion (the remainder) of West End.23 Includes GAFO (General Merchandise, Apparel, Furniture/Furnishings, Other) and Food. Estimates based on available date from APP andNorris, Beggs & Simpson. Generally excludes retail and restaurants in hotels. Composition breakdowns are approximate.24 Estimate only. No survey data available.25 Estimate only. Based on review of AAP retail database; information provided by local retail consultants and general survey observations.

TABLE 10PORTLAND DISTRICT RETAIL STRATEGYRECOMMENDED RETAIL MERCHANDISING MIX PLAN (2010)

West End/Crossroads and Cultural Districts26

APPROXIMATE BOUNDARIES CrossroadsSalmon, 13th, Burnside, 9 th/10th

CulturalMarket, 12th, Salmon, Broadway

ROLE Be:3. Downtown Location for New

Local Tenants4. Crossroads for Pearl and

Core Districts

Be a Complementary Retail DistrictSupporting Cultural Uses

SIZE AND COMPOSITION OFOPPORTUNITY 27

+50,000 to 75,000 ±SF50% Specialty Retail50% Eating and Drinking

Minor Addition70% Eating and Drinking30% Specialty Retail

Total = 250,000 – 275,000 ±SF Total = 100,000 + SF

RECOMMENDED THEME § Eclectic, Local and Ethnic Retailand Restaurants

§ Cultural-Oriented SpecialtyRetail (including gift shops andbookstores) and Small Cafes/Restaurants

DESIRED NATURE OFSHOPPING PLACE

§ Street Retail (10th & 11th,Morrison, Alder

§ Street Retail connecting with10th and Park Blocks

§ Vicinity of Safeway

DESIRED FUTURELOCATIONALCONCENTRATION

Reinforce:§ 10th & 11th (Taylor to Alder)§ Morrison Street§ “Singer” Boutique Row§ Federal Reserve Building Site

Rehab/Reuse§ Streetcar Stops

Reinforce:Broadway to 10th along Park Blocks

DESIRED TENANT MIX (by No.of Tenants)28

90%-95% Local/Regional Tenants5%-10% National/ Brand Tenants

90%-95% Local/Regional Tenants5%-10% National/ Brand Tenants(Safeway)

26 These districts are in addition to the residential neighborhood in the southern portion (the remainder) of West End.27 The lower end of net new retail space recommended, i.e., 350,000± sq.ft., reflects the increase in expenditure potential between2000 and 2010 projected in KMA’s 1998 Portland Downtown Retail Market Analysis. The upper end assumes more optimisticconditions. The allocation of the total new space addition by District and type of retail is based on KMA’s assessment of the likelyopportunities in each district.28 Based on KMA’s assessment of each District’s existing characteristics and opportunities.

TABLE 10 (continued)APPROXIMATE BOUNDARIES Crossroads

Salmon, 13th, Burnside, 9 th/10thCulturalMarket, 12th, Salmon, Broadway

DESIRED MERCHANDISINGMIX

Expansion:§ Signature and Trendy

Restaurants on Morrison Street§ Upscale Boutique Retail on

“Singer Block”§ Cutting Edge Retail (Burnside

Triangle, which holds a lot ofentertainment venues)

§ Electronics

New:§ Sidewalk Cafes§ Boutique Hotels§ “Chef” Restaurants§ Art Galleries/Shops§ Small Performing Arts Venues

ENHANCEMENTS BENEFITINGRETAIL

§ More short-term, visitor parking§ Elimination of surface parking

lots§ Attractions (sign/banners,

information kiosks, etc.)§ Sidewalk amenities, i.e.,

flowerpots, benches, vendorsalong 10th and 11th, etc.

§ Organization of diverse interestsin District.

§ Establish links with streetcarand MAX

§ “Kid-oriented” area betweenLibrary and museums

§ Sidewalk amenities, streetartisans, food and flowervendors, etc.

§ Streetcar links

RECOMMENDATIONS AND IMPLEMENTATION

Recommendations

Key implementation actions that have been identified by the consultant at this time include thefollowing:

Overall

§ Conduct a consumer intercept survey in each of the four retail districts to provide betterunderstanding of the origin and nature of the existing market support segments so that thetypes of retail targeted can be matched more closely to retail demand.

§ Incorporate into appropriate existing web sites to (1) promote Portland as "one of the top 10places in the U.S. to do business"; (2) provide pertinent information to businessesconsidering potential location or relocation to Portland; and (3) provide resource links toother web sites for new or existing businesses seeking assistance.

§ Coordinate with the West End Vision Plan and Portland Department of Transportation(PDOT) to advocate for retail recommendations to develop a comprehensive solution to theBurnside Triangle issue. The complexity of the issue, which involves traffic circulation,pedestrian safety, urban design, land use, etc., requires a multi-disciplinary approach thattakes into consideration the diverse needs of multiple interest groups.

§ APP to explore the possibility of including into the Clean and Safe Program those blockswithin the districts which are not currently part of the Program but which are part of theoverall downtown.

§ Reexamine and amend, as needed, existing plan and zoning designations in the districts toensure that they are consistent and supportive of the recommended retail concept for thearea.

§ Identify a major pedestrian spine that enhances and reinforces the retail conceptsrecommended in this Report, i.e., links together the major retail location concentrations ineach district; links the retail concentrations to the major transit stops within the district. Planelements should include streetscape, benches, street lighting, signage, banners and otherwayfinding systems, and other design amenities.

§ Develop a downtown parking plan to anticipate future demand. Also explore with theappropriate public transit providers the possibility of upgrading weekend services.

§ Initiate exploratory discussions with the City regarding the upgrading of street level retail inthe Smart Garages downtown. Most of these garages are strategically located such that theproper retenanting of the space can add to the synergistic retail mix of the district. Inaddition, the garages can be improved to attract more utilization, i.e., by adding more lights,security, etc. and by creating promotional linkages to downtown stores, events and otheractivities.

§ Establish a retail database to track, monitor, and periodically analyze changes in retailinventory and tenancy. The purpose is to provide City with the capacity to intervene earlybefore a district's economic health is impacted, for example, by identifying early the need ofexisting tenants for expansion space.

Core District

§ Continue discussions with department stores regarding their upgrade, expansion and/orrelocation plans.

§ Continue to work with the Galleria on the renovation and retenanting of the building.

§ Transit mall rehabilitation.

§ Extended hours for MAX and bus service for evenings and weekends.


§ Encourage more activities and new development complementary to Chinatown in the vicinityof the Chinatown Gate at West Burnside.

§ Encourage continuous retail frontage along NW Everett Street to connect the MAX Stationstops with the Chinese Classical Garden and Chinatown.

§ Increase efforts to promote the adopted Old Town/Chinatown Development Program.

§ Fix Burnside.

Pearl District

§ Identify potential site(s) for clustering of neighborhood service uses.

West End District

§ Expand Morrison Street and Alder Street by encouraging the addition of retail uses similar orcomplementary to those existing.

§ Organize the diverse interest groups in the District to represent a single, unified voice.

§ Work with existing cultural facilities and nearby retailers to organize events and programs topromote the district as a whole.

§ Initiate discussion with the Federal Reserve on the potential reuse of part of its site frontingon SW 10th Street.

The above actions represent a sample of the key strategies that can potentially be consideredfor implementation in the near term. Additional strategies and details on implementation will bedeveloped in the Implementation Phase of this three-phase effort.

Implementation

The Implementation Plan will comprise the third component of Portland Downtown’s DistrictRetail Strategies. The key elements of the Plan, when complete, will include the public andprivate actions needed, the approximate time frame, the resources available, and the lead entityand others required to implement the district retail strategies proposed in this Phase II Report.A complete Plan will be developed subsequent to the release of this report.

Key strategies and actions to be articulated will be linked to retail developments. Each actionwill have a role in assuring the continued growth of the independent retail base that currentlyexists and that supports the retail concept recommended for the specific district. The goal is toencourage the most appropriate retail mix in each district and in downtown overall.

It is recommended that an advisory committee be formed to work with PDC staff, APP, theDRC, and other experts in formulating the Implementation Plan. It is further recommended thatproperty owners, businesses, residents, brokers and other stakeholders participate on theadvisory committee to provide public input to the Plan. The collaboration among APP, PDC andthe DRC will continue during the implementation, with APP taking the lead.

Limiting Conditions to Projections, Conclusions, and Recommendations

Keyser Marston Associates, Inc. (KMA) has made extensive efforts to confirm the accuracy andtimeliness of the information contained in this document. Such information was compiled from avariety of sources deemed to be reliable including state and local government, planningagencies, real estate brokers, and other third parties. Although KMA believes all information inthis document is correct, it does not guarantee the accuracy of such and assumes noresponsibility for inaccuracies in the information provided by third parties. Further, no guaranteeis made as to the ultimate retail development in each of the Retail Districts as herein describedas it is not possible to project with accuracy the future economic conditions which may affect thebalance of supply and demand in each of these Districts.

The accompanying projections and analyses are based on estimates and assumptions whichwere developed using currently available economic data, project specific data and otherrelevant information. It is the nature of forecasting, however, that some assumptions may notmaterialize and unanticipated events and circumstances may occur. Such changes are likely tobe material to the projections and conclusions herein and, if they occur, require review orrevision of this document.

APPENDIX – DISTRICT RETAIL MAPS

Retail Districts (overall)Retail Core DistrictHistoric Old Town / Chinatown / Skidmore DistrictPearl DistrictWest End / CrossroadsCultural District

i These districts are in addition to the residential neighborhood in the southern portion (the remainder) of West End.ii Includes GAFO (General Merchandise, Apparel, Furniture/Furnishings, Other) and Eating and Drinking. Estimates based onavailable data from APP and Norris, Beggs & Simpson. Generally excludes retail and restaurants in hotels. Compositionbreakdowns are approximate.iii Assumes Galleria is in Retail Core District inventory.iv Based on APP’s Business Improvement District Program retail database.v Based on the City’s 1999 Pearl District Parking Study Survey, excludes retail services and auto related uses.v i Estimate only. No survey data available.vii Estimate only. Based on review of APP retail database; information provided by local retail consultants and windshield surveys.viii These districts are in addition to the residential neighborhood in the southern portion (the remainder) of West End.ix The lower end of net new retail space recommended, i.e., 350,000± sq.ft., reflects the increase in expenditure potential between2000 and 2010 projected in KMA’s 1998 Portland Downtown Retail Market Analysis. The upper end assumes more optimisticconditions. The allocation of the total new space addition by District and type of retail is based on KMA’s assessment of the likelyopportunities in each district.x GAFO defined as General Merchandise, Apparel, Furniture/Furnishings, Other Specialty Retail.xi Based on KMA’s assessment of each District’s existing characteristics and opportunities.xii The lower end of net new retail space recommended, i.e., 350,000± sq.ft., reflects the increase in expenditure potential between2000 and 2010 projected in KMA’s 1998 Portland Downtown Retail Market Analysis. The upper end assumes more optimisticconditions. The allocation of the total new space addition by District and type of retail is based on KMA’s assessment of the likelyopportunities in each district.xiii GAFO defined as General Merchandise, Apparel, Furniture/Furnishings, Other Specialty Retail.xiv Based on KMA’s assessment of each District’s existing characteristics and opportunities.

retail merchandising mix plan - vmw.pdc.usvmw.pdc.us/pdf/dev_serv/retialmerchandisingmixplan.pdf ·...

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